In the Ansoff Matrix, which growth strategy corresponds to new product and existing market?

• A. Market Penetration
• B. Product Development
• C. Market Development
• D. Diversification

Answer: (B)

The main idea here is how the Ansoff Matrix pairs product changes with market scope to describe growth options. When you keep the same customers (existing market) but introduce something new for them (a new product), you’re pursuing product development. This strategy leverages the company’s knowledge of its current customers and channels while expanding the product offering to increase sales with the same market.

For example, a cosmetics brand might launch a new skincare line aimed at its existing customers through its familiar retail partners.

In contrast, market penetration would use the same product in the same market to gain share; market development would bring the same product to a new market; diversification would involve a new product in a new market.